According to Singapore’s Finance Minister Lawrence Wong, income earned from NFT transactions would also be subject to the current tax laws.
The Business Times reported a recent speech of Singapore’s Finance Minister, Lawrence Wong, saying the current tax rules will apply to income earned from non-exchangeable tokens (NFT). However, there is no capital duty in Singapore. This means that anyone earning capital gains from trading in non-exchangeable tokens will not have to pay taxes.
According to analysts, recent tax reforms will reduce inequality, strengthen social ties, and affect long-term spending, among other things.
Singapore has adopted a “technology-neutral” view on NFT
Earlier this year, Singapore officials warned their citizens not to invest in digital assets, especially in the nascent NFT and metaverse sectors. Even though Singapore is often considered one of the next cryptocurrency hubs in Asia, they have called on global regulators to exert more control over digital investments. Singapore is carefully reviewing the risks associated with blockchain, decentralized finance, NFT, and metaverse technologies.
In response to a parliamentary question last month, Tharman Shanmugaratnam, Senior Minister and Managing Minister of the Monetary Authority of Singapore (MAS) stated that Singapore did not intend to regulate the NFT market.
MAS cannot regulate or monitor all things that people choose to invest their money in. While we assess whether NFTs should be regulated, we also consider the nature of their underlying assets. MAS does not yet restrict NFTs because of the nature of these assets, such as the several examples mentioned earlier. This is the same stance taken by most other leading jurisdictions.
According to Shanmugaratnam, MAS had chosen a “technology-neutral approach.” To determine whether tokens should be regulated, he “analyzed” the characteristics of tokens. Under the Securities and Futures Act, NFTs will be subject to MAS regulations if they demonstrate the characteristics of a capital market product.
Ravi Menon, managing director of MAS, has stated previously that MAS has no intention of banning bitcoin and cryptocurrencies, as the two are key elements of the digital future.
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